FHA Bailout Protection Act of 2011

Summary

FHA Bailout Protection Act of 2011 - Amends the National Housing Act (NHA) to direct the Secretary of Housing and Urban Development (HUD) to take action to ensure that the Mutual Mortgage Insurance Fund attains and maintains a capital ratio of at least 2%. Includes among such actions: (1) increasing mortgage insurance premiums, (2) establishing more stringent underwriting standards, and (3) increasing the amount of cash (or its equivalent) required to be paid on account of the property subject to a mortgage. Directs the Secretary to raise annual insurance premiums and charge an additional risk-based annual insurance premium if: (1) the Fund fails to attain a capital ratio of 2% by a specified date or maintain it, or (2) the Fund's expected claims rate as set forth in the quarterly independent actuarial study is 10.0 or higher. Directs the Secretary to require a mortgagee to indemnify HUD for losses resulting from payment of an insurance claim with respect to a mortgage: (1) executed under the direct endorsement program or insured by the mortgagee pursuant to a delegation of authority, but (2) not originated or underwritten in accordance with HUD requirements. Requires indemnification also in the event that fraud or misrepresentation was involved in an origination or underwriting. Directs the Secretary of HUD to take any actions required to seek indemnification for any early term delinquency on a mortgage which: (1) is an obligation of the Mutual Mortgage Insurance Fund; and (2) at the time of origination was not in compliance with NHA requirements. Directs the Secretary of HUD to establish a program to review the cause of each early term delinquency on such a mortgage. Converts from annual to quarterly the frequency of an independent actuarial study of the Mutual Mortgage Insurance Fund. Amends the Federal Credit Reform Act of 1990 to prohibit the Secretary of the Treasury from entering into specified transactions with the Mutual Mortgage Insurance Fund.

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Timeline

1. 15 December 2011

   Introduced

   Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

   Source: IntroReferral

2. 15 December 2011

   Introduced

   Introduced in Senate

   Source: IntroReferral

Votes

No vote records are attached yet.

Versions

• Introduced in Senate · 15 December 2011 · Official file

Documents

3 official files

• Introduced in Senate (text)

  Introduced in Senate · EN · 15 December 2011

  ViewDownloadOpen at official source

• Introduced in Senate (PDF)

  Introduced in Senate · EN · 15 December 2011

  ViewDownloadOpen at official source

• Introduced in Senate

  summary · EN · 15 December 2011

  Open at official source

Sponsors

• Sen. Vitter, David [R-LA] · R · Sponsor
• Mike Crapo · R · Sponsor
• Sen. Johanns, Mike [R-NE] · R · Sponsor
• Sen. Toomey, Patrick [R-PA] · R · Sponsor
• Sen. DeMint, Jim [R-SC] · R · Sponsor
• Rand Paul · R · Sponsor
• James Risch · R · Sponsor
• John Cornyn · R · Sponsor
• Mike Lee · R · Sponsor
• · ssbk00 · Standing

Related records

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